84010 Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98917 

(November 13, 2023), 88 FR 80361 (November 17, 

2023) (SR–MIAX–2023–36) (Order Approving a 

Proposed Rule Change To Amend Exchange Rule 

404, Series of Option Contracts Open for Trading). 

4The term ‘‘options contract’’ means a put or a 

call issued, or subject to issuance by the Clearing 

Corporation pursuant to the Rules of the Clearing 

Corporation. See Options 1, Section 1(a)(31). 

5The terms ‘‘class of options’’ means all options 

contracts covering the same underlying security. 

See Options 1, Section 1(a)(8). 

6See Supplementary Material .02 to Options 4, 

Section 5. 

7The term ‘‘series of options’’ means all options 

contracts of the same class having the same exercise 

price and expiration date. See Options 1, Section 

1(a)(47). 

8See Supplementary Material .01(a) to Options 4, 

Section 5. 

9See Supplementary Material .05 to Options 4, 

Section 5. 

10 Id. 

11See Supplementary Material .03 to Options 4, 

Section 5. 

12See Supplementary Material .05 to Options 4, 

Section 5. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99029; File No. SR–ISE– 

2023–30] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 4, 

Section 5 Related to a Low Priced 

Stock Strike Price Interval Program 

November 28, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

20, 2023, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Options 4, Section 5, Series of Options 

Contracts Open for Trading. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Options 4, Section 5, Series of Options 

Contracts Open for Trading. Miami 

International Securities Exchange, LLC 

(‘‘MIAX’’) recently received approval to 

amend its Rule 404 to implement a new 

strike interval program for stocks that 

are priced less than $2.50 and have an 

average daily trading volume of at least 

1,000,000 shares per day for the 3 

preceding calendar months.3 At this 

time, the Exchange proposes to adopt 

rules substantively identical to MIAX at 

new Supplementary Material .08 to 

Options 4, Section 5 and also amend 

Supplementary Material .07 to Options 

4, Section 5 to harmonize the table to 

the proposed rule text. 

Background 

Currently, Options 4, Section 5, Series 

of Options Contracts Open for Trading, 

describes the process and procedures for 

listing and trading series of options 4 on 

the Exchange. Supplementary Material 

.02 to Options 4, Section 5 provides for 

a $2.50 Strike Price Program, where the 

Exchange may select up to 60 option 

classes 5 on individual stocks for which 

the interval of strike prices will be $2.50 

where the strike price is greater than 

$25.00 but less than $50.00.6

Supplementary Material .01 to Options 

4, Section 5 also provides for a $1 Strike 

Price Interval Program, where the 

interval between strike prices of series 

of options 7 on individual stocks may be 

$1.00 or greater provided the strike 

price is $50.00 or less, but not less than 

$1.00.8 Additionally, Supplementary 

Katerial .05 to Options 4, Section 5 

provides for a $0.50 Strike Program.9

The interval of strike prices of series of 

options on individual stocks may be 

$0.50 or greater beginning at $0.50 

where the strike price is $5.50 or less, 

but only for options classes whose 

underlying security closed at or below 

$5.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 

equals or exceeds 1,000 contracts per 

day as determined by The Options 

Clearing Corporation during the 

preceding three calendar months. The 

listing of $0.50 strike prices is limited 

to options classes overlying no more 

than 20 individual stocks (the ‘‘$0.50 

Strike Program’’) as specifically 

designated by the Exchange. The 

Exchange may list $0.50 strike prices on 

any other option classes if those classes 

are specifically designated by other 

securities exchanges that employ a 

similar $0.50 Strike Program under their 

respective rules. A stock shall remain in 

the $0.50 Strike Program until otherwise 

designated by the Exchange.10

Proposal 

At this time, the Exchange proposes to 

adopt a new strike interval program for 

stocks that are not in the 

aforementioned $0.50 Strike Program (or 

the Short Term Option Series 

Program) 11 and that close below $2.50 

and have an average daily trading 

volume of at least 1,000,000 shares per 

day for the three (3) preceding calendar 

months. The $0.50 Strike Program 

considers stocks that have a closing 

price at or below $5.00 whereas the 

Exchange’s proposal will consider 

stocks that have a closing price below 

$2.50. Currently, there is a subset of 

stocks that are not included in the $0.50 

Strike Program as a result of the 

limitations of that program which 

provides that the listing of $0.50 strike 

prices shall be limited to option classes 

overlying no more than 20 individual 

stocks as specifically designated by the 

Exchange and requires a national 

average daily volume that equals or 

exceeds 1,000 contracts per day as 

determined by The Options Clearing 

Corporation during the preceding three 

calendar months.12 Therefore, the 

Exchange is proposing to implement a 

new strike interval program termed the 

‘‘Low Priced Stock Strike Price Interval 

Program.’’ 

To be eligible for the inclusion in the 

Low Priced Stock Strike Price Interval 

Program, an underlying stock must (i) 

close below $2.50 in its primary market 

on the previous trading day; and (ii) 

have an average daily trading volume of 

at least 1,000,000 shares per day for the 

three (3) preceding calendar months. 

The Exchange notes that there is no 

limit to the number of classes that will 

be eligible for inclusion in the proposed 

program, provided, of course, that the 

underlying stocks satisfy both the price 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Notices 84011 

13While the Exchange may list new strikes on 

underlying stocks that meet the eligibility 

requirements of the new program the Exchange will 

exercise its discretion and will not list strikes on 

underlying stocks the Exchange believes are subject 

to imminent delisting from their primary exchange. 

14The Exchange notes this is the same 

methodology used in the $1 Strike Price Interval 

Program. See Supplementary Material .01(b)(3) of 

Options 4, Section 5. 

15See Options 4, Section 3(b)(4). 

16See Options 4, Section 3(f)(3)(ii). 

17See Options 4A, Section 3(d)(7). 

18See Securities Exchange Release Act No. 91125 

(February 21, 2021), 86 FR 10375 (February 19, 

2021) (SR–BX–2020–032) (Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment No. 1, To Amend 

Options 4, Section 5, To Limit Short Term Options 

Series Intervals Between Strikes That Are Available 

for Quoting and Trading on BX) (‘‘BX–2020–032’’). 

19See BX–2020–032. See also https://

www.nasdaq.com/solutions/bx-options-strikeproliferation-proposal. 

20See BX–2020–032. 

21See BX–2020–032. 

22See proposed Supplementary Material .08(a) of 

Options 4, Section 5 that requires that an 

underlying stock must (i) close below $2.50 in its 

primary market on the previous trading day; and (ii) 

Continued 

and average daily trading volume 

requirements of the proposed program. 

The Exchange also proposes that after 

a stock is added to the Low Priced Stock 

Strike Price Interval Program, the 

Exchange may list $0.50 strike price 

intervals from $0.50 up to $2.00.13 For 

the purpose of adding strikes under the 

Low Priced Stock Strike Price Interval 

Program, the ‘‘price of the underlying 

stock’’ shall be measured in the same 

way as ‘‘the price of the underlying 

security’’ as set forth in Options 4, 

Section 6(b)(i).14 Further, no additional 

series in $0.50 intervals may be listed if 

the underlying stock closes at or above 

$2.50 in its primary market. Additional 

series in $0.50 intervals may not be 

added until the underlying stock again 

closes below $2.50. 

The Exchange’s proposal addresses a 

gap in strike coverage for low priced 

stocks. The $0.50 Strike Program 

considers stocks that close below $5.00 

and limits the number of option classes 

listed to no more than 20 individual 

stocks (provided that the open interest 

criteria is also satisfied). Whereas, the 

Exchange’s proposal has a narrower 

focus, with respect to the underlying’s 

stock price, and is targeted on those 

stocks that close below $2.50 and does 

not limit the number of stocks that may 

participate in the program (provided 

that the average daily trading volume is 

also satisfied). The Exchange does not 

believe that any market disruptions will 

be encountered with the addition of 

these new strikes. The Exchange 

represents that it has the necessary 

capacity and surveillance programs in 

place to support and properly monitor 

trading in the proposed Low Priced 

Stock Strike Price Interval Program. 

The Exchange believes that its average 

daily trading volume requirement of 

1,000,000 shares is a reasonable 

threshold to ensure adequate liquidity 

in eligible underlying stocks as it is 

substantially greater than the thresholds 

used for listing options on equities, 

American Depository Receipts, and 

broad-based indexes. Specifically, 

underlying securities with respect to 

which put or call option contracts are 

approved for listing and trading on the 

Exchange must meet certain criteria as 

determined by the Exchange. One of 

those requirements is that trading 

volume (in all markets in which the 

underlying security is traded) has been 

at least 2,400,000 shares in the 

preceding twelve (12) months.15

Options 4, Section 3(f) provides the 

criteria for listing options on American 

Depositary Receipts (‘‘ADRs’’) if they 

meet certain criteria and guidelines set 

forth in Options 4, Section 3 One of the 

requirements is that the average daily 

trading volume for the security in the 

U.S. markets over the three (3) months 

preceding the selection of the ADR for 

options trading is 100,000 or more 

shares.16 Finally, the Exchange may 

trade options on a broad-based index 

pursuant to Rule 19b–4(e) of the Act 

provided a number of conditions are 

satisfied. One of those conditions is that 

each component security that accounts 

for at least one percent (1%) of the 

weight of the index has an average daily 

trading volume of at least 90,000 shares 

during the last six month period.17

Additionally, the Exchange proposes 

to amend the table in Supplementary 

Material .07 of Options 4, Section 5 to 

insert a new column to harmonize the 

Exchange’s proposal to the strike 

intervals for Short Term Options Series 

as described in Supplementary Material 

.03 to Options 4, Section 5. The table in 

Supplementary Material .03 is intended 

to limit the intervals between strikes for 

multiply listed equity options within 

the Short Term Options Series program 

that have an expiration date more than 

twenty-one days from the listing date. 

Specifically, the table defines the 

applicable strike intervals for options on 

underlying stocks given the closing 

price on the primary market on the last 

day of the calendar quarter, and a 

corresponding average daily volume of 

the total number of options contracts 

traded in a given security for the 

applicable calendar quarter divided by 

the number of trading days in the 

applicable calendar quarter.18 However, 

the lowest share price column is titled 

‘‘less than $25.’’ The Exchange now 

proposes to insert a column titled ‘‘Less 

than $2.50’’ and to set the strike interval 

at $0.50 for each average daily volume 

tier represented in the table. Also, the 

Exchange proposes to amend the 

heading of the column currently titled 

‘‘less than $25,’’ to ‘‘$2.50 to less than 

$25’’ as a result of the adoption of the 

new proposed column, ‘‘Less than 

$2.50.’’ The Exchange believes this 

change will remove any potential 

conflict between the strike intervals 

under the Short Term Options Series 

Program and those described herein 

under the Exchange’s proposal. 

Impact of Proposal 

The Exchange recognizes that its 

proposal will introduce new strikes in 

the marketplace and further 

acknowledges that there has been 

significant effort undertaken by the 

industry to curb strike proliferation. 

This initiative has been spearheaded by 

Nasdaq BX, Inc. (‘‘BX’’) when it filed an 

initial proposal focused on the removal, 

and prevention of the listing, of strikes 

which are extraneous and do not add 

value to the marketplace (the ‘‘Strike 

Interval Proposal’’).19 The Strike 

Interval Proposal was intended to 

remove repetitive and unnecessary 

strike listings across the weekly 

expiries. Specifically, the Strike Interval 

Proposal aimed to reduce the density of 

strike intervals that would be listed in 

the later weeks, by creating limitations 

for intervals between strikes which have 

an expiration date more than twentyone days from the listing date.20 The 

Strike Interval Proposal took into 

account OCC customer-cleared volume, 

using it as an appropriate proxy for 

demand. The Strike Interval Proposal 

was designed to maintain strikes where 

there was customer demand and 

eliminate strikes where there was not 

demand. At the time of its proposal, BX 

estimated that the Strike Interval 

Proposal would reduce the number of 

listed strikes in the options market by 

approximately 81,000 strikes.21 The 

Exchange proposes to amend the table 

to define the strike interval at $0.50 for 

underlying stocks with a share price of 

less than $2.50. The Exchange believes 

this amendment will harmonize the 

Exchange’s proposal with the Strike 

Interval Proposal described above. 

The Exchange recognizes that its 

proposal will moderately increase the 

total number of option series available 

on the Exchange. However, the 

Exchange’s proposal is designed to only 

add strikes where there is investor 

demand 22 which will improve market 


lotter on DSK11XQN23PROD with NOTICES1
84012 Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Notices 

have an average daily trading volume of at least 

1,000,000 shares per day for the three (3) preceding 

calendar months. 

23 15 U.S.C. 78f(b). 

24 15 U.S.C. 78f(b)(5). 

25 15 U.S.C. 78(f)(b)(5). 

26See Yahoo! Finance, https://

finance.yahoo.com/quote/SOND/history?p=SOND 

(last visited August 10, 2023). 

27See Yahoo! Finance, https://

finance.yahoo.com/quote/CTXR/history?p=CTXR 

(last visited August 10, 2023). 

quality. Under the requirements for the 

Low Priced Stock Strike Price Interval 

Program as described herein, MIAX 

determined that as of August 9, 2023, 

106 symbols met the proposed criteria. 

Of those symbols, MIAX noted that 36 

are currently in the $1 Strike Price 

Interval Program with $1.00 and $2.00 

strikes listed. Under the Exchange’s 

proposal, the $0.50 and $1.50 strikes for 

these symbols would be added for the 

current expiration terms. Similar to 

MIAX, the remaining 70 symbols 

eligible under the proposal would have 

$0.50, $1.00, $1.50 and $2.00 strikes 

added to their current expiration terms. 

Therefore, MIAX noted that for the 106 

symbols eligible for the Low Priced 

Stock Strike Price Interval Program, a 

total of approximately 3,250 options 

would be added. As of August 9, 2023, 

MIAX noted it listed 1,106,550 options, 

and therefore, the additional options 

that would be listed under this proposal 

would represent a relatively minor 

increase of 0.294% in the number of 

options listed. 

The Exchange does not believe that its 

proposal contravenes the industry’s 

efforts to curtail unnecessary strikes. 

The Exchange’s proposal is targeted to 

only underlying stocks that close at less 

than $2.50 and that also meet the 

average daily trading volume 

requirement. Additionally, because the 

strike increment is $0.50 there are only 

a total of four strikes that may be listed 

under the program ($0.50, $1.00, $1.50, 

and $2.00) for an eligible underlying 

stock. Finally, if an eligible underlying 

stock is in another program (e.g., the 

$0.50 Strike Program or the $1 Strike 

Price Interval Program) the number of 

strikes that may be added is further 

reduced if there are pre-existing strikes 

as part of another strike listing program. 

Therefore, the Exchange does not 

believe that it will list any unnecessary 

or repetitive strikes as part of its 

program, and that the strikes that will be 

listed will improve market quality and 

satisfy investor demand. 

The Exchange further believes that the 

Options Price Reporting Authority 

(‘‘OPRA’’), has the necessary systems 

capacity to handle any additional 

messaging traffic associated with this 

proposed rule change. The Exchange 

also believes that Members will not 

have a capacity issue as a result of the 

proposed rule change. Finally, the 

Exchange believes that the additional 

options will serve to increase liquidity, 

provide additional trading and hedging 

opportunities for all market 

participants, and improve market 

quality. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,23 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,24

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section (6)(b)(5) 25 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes its proposal 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system as the Exchange has identified a 

subset of stocks that are trading under 

$2.50 and do not have meaningful 

strikes available. For example, on 

August 9, 2023, symbol SOND closed at 

$0.50 and had open interest of over 

44,000 contracts and an average daily 

trading volume in the underlying stock 

of over 1,900,000 shares for the three 

preceding calendar months.26 Currently 

the lowest strike listed is for $2.50, 

making the lowest strike 400% away 

from the closing stock price. Another 

symbol, CTXR, closed at $0.92 on 

August 9, 2023, and had open interest 

of 63,000 contracts and an average daily 

trading volume in the underlying stock 

of over 1,900,000 shares for the three 

preceding calendar months.27 Similarly, 

the lowest strike listed is for $2.50, 

making the lowest strike more than 

170% away from the closing stock price. 

Currently, such products have no at-themoney options, as well as no in-themoney calls or out-of-the-money puts. 

The Exchange’s proposal will provide 

additional strikes in $0.50 increments 

from $0.50 up to $2.00 to provide more 

meaningful trading and hedging 

opportunities for this subset of stocks. 

Given the increased granularity of 

strikes as proposed under the 

Exchange’s proposal out-of-the-money 

puts and in-the-money calls will be 

created. The Exchange believes this will 

allow market participants to tailor their 

investment and hedging needs more 

effectively. 

The Exchange believes its proposal 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system and, in general, protects 

investors and the public interest by 

adding strikes that improves market 

quality and satisfies investor demand. 

The Exchange does not believe that the 

number of strikes that will be added 

under the program will negatively 

impact the market. Additionally, the 

proposal does not run counter to the 

efforts undertaken by the industry to 

curb strike proliferation as that effort 

focused on the removal and prevention 

of extraneous strikes where there was no 

investor demand. The Exchange’s 

proposal requires the satisfaction of an 

average daily trading volume threshold 

in addition to the underlying stock 

closing at a price below $2.50 to be 

eligible for the program. The Exchange 

believes that the average daily trading 

volume threshold of the program 

ensures that only strikes with investor 

demand will be listed and fills a gap in 

strike interval coverage as described 

above. Further, being that the strike 

interval is $0.50, there are only a 

maximum of four strikes that may be 

added ($0.50, $1.00, $1.50, and $2.00). 

Therefore, the Exchange does not 

believe that its proposal will undermine 

the industry’s efforts to eliminate 

repetitive and unnecessary strikes in 

any fashion. 

The Exchange believes that its average 

daily trading volume threshold 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system and, in general, protects 

investors and the public interest as it is 

designed to permit only those stocks 

with demonstrably high levels of trading 

activity to participate in the program. 

The Exchange notes that its average 

daily trading volume requirement is 

substantially greater than the average 

daily trading requirement currently in 

place on the Exchange for options on 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Notices 84013 

28See supra note 15. 

29See supra note 16. 

30See supra note 17. 

31See Options 4, Section 3(a)(1) and (2). 32See Options 4, Section 3(b)(1), (2), (3) and (4). 

33 15 U.S.C. 78s(b)(3)(A). 

34 17 CFR 240.19b–4(f)(6). 

35 In addition, Rule 19b–4(f)(6) requires a selfregulatory organization to give the Commission 

written notice of its intent to file the proposed rule 

change at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

36 17 CFR 240.19b–4(f)(6)(iii). 

37See supra note 3. 

38For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

equity underlyings,28 ADRs,29 and 

broad-based indexes.30

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(1) of the Act, which 

provides that the Exchange be organized 

and have the capacity to be able to carry 

out the purposes of the Act and the 

rules and regulations thereunder, and 

the rules of the Exchange. The proposed 

rule change allows the Exchange to 

respond to customer demand to provide 

meaningful strikes for low priced stocks. 

The Exchange does not believe that the 

proposed rule would create any capacity 

issue or negatively affect market 

functionality. Additionally, the 

Exchange represents that it has the 

necessary systems capacity to support 

the new options series and handle 

additional messaging traffic associated 

with this proposed rule change. The 

Exchange also believes that its Members 

will not experience any capacity issues 

as a result of this proposal. In addition, 

the Exchange represents that it believes 

that additional strikes for low priced 

stocks will serve to increase liquidity 

available as well as improve price 

efficiency by providing more trading 

opportunities for all market 

participants. The Exchange believes that 

the proposed rule change will benefit 

investors by giving them increased 

opportunities to execute their 

investment and hedging decisions. 

Finally, the Exchange believes its 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices as options may only be listed 

on underlyings that satisfy the listing 

requirements of the Exchange as 

described in Options 4, Section 3, 

Criteria for Underlying Securities. 

Specifically, Options 4, Section 3 

requires that underlying securities for 

which put or call option contracts are 

approved for listing and trading on the 

Exchange must meet the following 

criteria: (1) the security must be 

registered and be an ‘‘NMS stock’’ as 

defined in Rule 600 of Regulation NMS 

under the Exchange Act; (2) the security 

shall be characterized by a substantial 

number of outstanding shares that are 

widely held and actively traded.31

Additionally, Options 4, Section 3 

provides that absent exceptional 

circumstances, an underlying security 

will not be selected for options 

transactions unless: (1) there are a 

minimum of seven (7) million shares of 

the underlying security which are 

owned by persons other than those 

required to report their stock holdings 

under Section 16(a) of the Exchange 

Act; (2) there are a minimum of 2,000 

holders of the underlying security; (3) 

the issuer is in compliance with any 

applicable requirements of the Exchange 

Act; and (4) trading volume (in all 

markets in which the underlying 

security is traded) has been at least 

2,400,000 shares in the preceding 

twelve (12) months.32 The Exchange’s 

proposal does not impact the eligibility 

of an underlying stock to have options 

listed on it, but rather addresses only 

the listing of new additional option 

classes on an underlying listed on the 

Exchange in accordance to the 

Exchange’s listings rules. As such, the 

Exchange believes that the listing 

requirements described in Options 4, 

Section 3 address potential concerns 

regarding possible manipulation. 

Additionally, in conjunction with the 

proposed average daily volume 

requirement described herein, the 

Exchange believes any possible market 

manipulation is further mitigated. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The Exchange does not believe that its 

proposed rule change will impose any 

burden on intra-market competition as 

the Rules of the Exchange apply equally 

to all Members of the Exchange and all 

Members may trade the new proposed 

strikes if they so choose. Specifically, 

the Exchange believes that investors and 

market participants will significantly 

benefit from the availability of finer 

strike price intervals for stocks priced 

below $2.50, which will allow them to 

tailor their investment and hedging 

needs more effectively. The Exchange’s 

proposal is substantively identical to 

MIAX Interpretations and Policies .11 

and .12 to Rule 404. 

The Exchange does not believe that its 

proposed rule change will impose any 

burden on inter-market competition, as 

nothing prevents other options 

exchanges from proposing similar rules 

to list and trade options on low priced 

stocks. Rather the Exchange believes 

that its proposal will promote intermarket competition, as the Exchange’s 

proposal will result in additional 

opportunities for investors to achieve 

their investment and trading objectives, 

to the benefit of investors, market 

participants, and the marketplace in 

general. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 33 and Rule 19b–4(f)(6) 34

thereunder, the Exchange has 

designated this proposal as one that 

effects a change that: (i) does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) by its terms, does 

not become operative for 30 days after 

the date of the filing, or such shorter 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest.35

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act normally does not become operative 

for 30 days after the date of its filing. 

However, Rule 19b–4(f)(6)(iii) 36 permits 

the Commission to designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange requested that 

the Commission waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission notes it has 

approved a proposed rule change 

substantially identical to the one 

proposed by the Exchange.37 The 

proposed change raises no novel legal or 

regulatory issues. Therefore, the 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.38

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 


lotter on DSK11XQN23PROD with NOTICES1
84014 Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Notices 

39 17 CFR 200.30–3(a)(12), (59). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in Nasdaq ISE 

Options 1, Section 1(a)(37). 

4 ‘‘Non-Select Symbols’’ are options overlying all 

symbols excluding Select Symbols. ‘‘Select 

Symbols’’ are options overlying all symbols listed 

on the Exchange that are in the Penny Interval 

Program. 

5 ‘‘Non-Priority Customers’’ include Market 

Makers, Non-Nasdaq ISE Market Makers (FarMMs), 

Firm Proprietary/Broker-Dealers, and Professional 

Customers. 

6See Options 7, Section 3, note 3. 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

ISE–2023–30 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–ISE–2023–30. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–ISE–2023–30 and should be 

submitted on or before December 22, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–26486 Filed 11–30–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99024; File No. SR–ISE– 

2023–28] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the 

Exchange’s Pricing Schedule at 

Options 7 

November 28, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

13, 2023, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Exchange’s Pricing Schedule at Options 

7. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Exchange’s 

Pricing Schedule at Options 7. Each 

change is described below. 

The Exchange initially filed the 

proposed pricing changes on November 

1, 2023 (SR–ISE–2023–26). On 

November 13, 2023, the Exchange 

withdrew that filing and submitted this 

filing. 

Background 

Regular Order Fees and Rebates 

As set forth in Options 7, Section 3, 

the Exchange currently has a maker/ 

taker pricing model where all market 

participants (except Priority 

Customers) 3 are assessed a uniform 

Regular Order maker fee of $0.70 per 

contract for Non-Select Symbol 4

executions that add liquidity on the 

Exchange, and a uniform Regular Order 

taker fee of $0.90 per contract for NonSelect Symbol executions that remove 

liquidity. Priority Customers are 

currently assessed a $0.86 per contract 

Regular Order maker rebate in NonSelect Symbols and a $0.00 per contract 

Regular Order taker fee in Non-Select 

Symbols. Additionally, all market 

participants are charged higher Regular 

Order taker fees for trades in Non-Select 

Symbols executed against Priority 

Customers. Specifically, Non-Priority 

Customers 5 are charged a taker fee of 

$1.10 per contract for trades executed 

against a Priority Customer, while 

Priority Customers are charged a taker 

fee of $0.86 per contract for trades 

executed against another Priority 

Customer.6

As it relates to the $0.86 per contract 

Priority Customer Regular Order maker 


lotter on DSK11XQN23PROD with NOTICES1